Over the past few years we've seen supply chain instability become a constant challenge for many industries. There have been global disruptions, unpredictable delays, and shifting demands. Because of all of this, companies are finding new ways to strengthen their supply chains.
One common-sense approach is to adopt a dual supplier strategy. Instead of relying on a single source for key components, businesses are now splitting their volume between two or more suppliers. This will help to reduce risk, but can leave continuous improvement teams scratching their heads: how do you effectively reflect this strategy on a value stream map?
How to display dual suppliers on a value stream map
This is where tools like eVSM come into play. Digital value stream mapping allows you to visually represent your supply network and show the distribution of demand across multiple suppliers. Let's break down how to do this and why it’s such a useful feature.
In eVSM, both production maps and supply network maps include a variable on the green material flow arrows. These arrows are not just for aesthetics—they carry crucial data.
One of the key variables you can use on these arrows is the percentage of demand at the downstream node being supplied through the arrow. This means you can connect two suppliers to the same downstream node (for example a factory, assembly line, or warehouse) for the same part. Then you can visually represent how much volume is being sourced from each one. For example, you might allocate 90% of your demand to your main supplier and 10% to a backup supplier.
This clear, visual split is super helpful when you're making decisions. You can see at a glance how your supply chain is structured and quickly adjust those percentages when needed.
For example, if your primary supplier is facing delays, or you know an impending strike is could potentially disrupt them, you might need to increase the share going to the secondary supplier. These types of change are easy to map with eVSM, helping you stay agile in times of uncertainty.
VSM software for dual suppliers and costings
But managing a dual supplier strategy goes beyond just splitting volume. There’s also the question of cost. Every supplier has its own cost structure, and part of the challenge is weighing those costs against the risks.
This is where eVSM’s activity-based costing capabilities shine. You can assign different per-part costs to each supplier, giving you a clear view of not only where your materials are coming from but also how much they’re costing you. Maybe your backup supplier charges more per part, but offers a more reliable delivery schedule. eVSM lets you map out those trade-offs in real-time, giving you the data you need to make smarter decisions.
In today’s environment, it’s more important than ever to have a resilient supply chain. By using eVSM to visualize and manage your dual supplier strategy, you’re not just reacting to disruptions—you’re proactively reducing risk. Whether it’s adjusting supply percentages or analyzing cost efficiency, eVSM provides the clarity and flexibility you need to navigate uncertainty with confidence.
Book a meeting with one of us today to see how much clarity eVSM can give you about your value stream. We’re looking forward to helping you!